Vietnam Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029

Vietnam Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029

The Vietnam Data Center Market is projected to register a CAGR of 8.84%

Key Highlights

• IT Load Capacity: The IT load capacity of the data center market may grow steadily and reach 242.4 MW by 2029.
• Raised Floor Space: The total raised floor area of the country is expected to reach 0.87 million sq. ft by 2029.
• Installed Racks: The total number of installed racks is expected to reach 43,875 units by 2029. Ho Chi Minh City is expected to house the maximum number of racks in the coming years.
• DC Facilities: The data centers in the region are majorly tier 3 facilities with a gradual inclination toward tier 4 DC standards. This transformation will improve the DC performance and reduce the downtime of facilities.
• Leading Market Player: FPT Telecom Joint Stock Company is the leading player in the Vietnamese market. It is projected to continue its leadership. It provides over 30,000 dedicated servers across popular brands, such as Dell, HP, and IBM.

Vietnam Data Center Market Trends

Tier 3 is the largest Tier Type

• The growth in uninterrupted business services is causing Tier 1 & 2 facilities to lose demand. A growing number of global companies are creating business continuity services and shifting priority to tier 3 data centers.
• The tier 3 sector in the Vietnamese data center market reached an IT load capacity of 119.56 MW in 2022. It is expected to register a CAGR of 2.23% to reach 139.56 MW by 2029. There is an increased investment in data center infrastructure and technological advancements. It is expected to create lucrative opportunities for market growth in 2029.
• Online entertainment, such as video and music streaming and games, was another activity gaining momentum among internet users across Vietnam. In rural areas, video and movie streaming has been one of the major daily online activities in recent years. YouTube was the most popular movie streaming platform. These services need data center facilities with minimum downtime and 24/7 support, which tier 3 facilities can offer.
• In 2021, 22% of people were estimated to use the internet for more than 9 hours a day for studying, entertainment, and shopping, with the majority on their smartphones. Vietnam had 77.93 million internet users in January 2023. The number of users increased by 5.3 million (+7.3%) between 2022 and 2023.
• The Vietnamese market is nascent for tier 4 facilities since it has many infrastructural inefficiencies and hiccups. Hence, as per analysis, the market has not witnessed any developments for the highest tier-based facilities.

Vietnam Data Center Industry Overview

The Vietnam Data Center Market is fairly consolidated, with the top five companies occupying 81.27%. The major players in this market are FPT Telecom Joint Stock Company, QTSC Telecom Center, Viettel IDC, VNG Cloud and VNPT (sorted alphabetically).

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support